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The BVI Business Companies (Amendment) Act, 2012 and the BVI Business Companies Regulations, 2012

October 2012 - Corporate & Commercial. Legal Developments by Bedell Cristin.

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The BVI Company is the most popular offshore corporate vehicle in use today in large part due to the flexibility afforded by the BVI Business Companies Act, 2004 (the "Act"). Amendments to the Act in the form of the BVI Business Companies (Amendment ) Act, 2012 will come into effect on 15 October 2012 and the BVI Business Companies Regulations, 2012 are also expected to become effective on the same date.

The BVI Company is the most popular offshore corporate vehicle in use today in large part due to the flexibility afforded by the BVI Business Companies Act, 2004 (the "Act"). Amendments to the Act in the form of the BVI Business Companies (Amendment ) Act, 2012 will come into effect on 15 October 2012 and the BVI Business Companies Regulations, 2012 are also expected to become effective on the same date.

The changes, while not sweeping in nature, do introduce further flexibility and clarity to the utilisation of BVI Business Companies. For a synopsis of the changes, please click here to read our briefing. Examples of the more significant changes include:

  • The enforcement of a BVI law governed charge need no longer be subject to any statutory cure period.
  • Former directors and senior managers of a company will be prohibited from acting as the company's voluntary liquidator.
  • A solvent liquidation will only be available where the company is both cash-flow and balance sheet solvent (previously cash flow solvency was sufficient).

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